August 19, 2011
This notice is a summary translation of the original Japanese timely disclosure release dated
August 3, 2011 and is for reference purposes only. In case of any discrepancy, the originalJapanese version shall prevail.
MACROMILL, INC.
Company Representative: Tetsuya Sugimoto, Chairman and President(Code No.: 3730, First Section of Tokyo Stock Exchange)
Contact for further information:
Yasuhiro Kihara, Senior Executive Officer and Chief Financial Officer
TEL: +81-3-6716-0700

Notice of Issuance of Euro Yen Zero Coupon Convertible Bonds due 2014
MACROMILL, INC (the “Company") is pleased to announce the issuance of Zero Coupon Convertible
Bonds due 2014 (bonds with stock acquisition right, tenkanshasaigata shinkabu yoyakuken-tsuki shasai)(the“Bonds'') resoleved at the meeting of the Board of Directors held on August 3, 2011.
Use of Proceeds
The net proceeds from the issue of the Bonds are estimated to be approximately ¥4,940 million after
deducting expenses and will be used primarily as follows:(i) approximately ¥2,500 million as funding for the repurchase of its own shares (the “Shares'') by theCompany; and(ii) approximately ¥2,440 million towards research and development and investments aimed atdevelopment of new business domains and innovations for the Company, and investment andmerger and acquisition costs aimed at the acceleration of expansion of the Company's businessoverseas, in particular in relation to the following: Mergers and acquisitions and alliances in China, Korea and the Asian region; Business promotion activities, including the possible establishment of a global controllingcompany in respect of the Company's businesses in the Asian region;
 Development in relation to new-generation, multi-lingual ”global" AIRs and the deployment ofsuch system overseas, as well as expanding its availability to various types of devices; Research and development relating to new applications and platforms, including in relation tosmartphones; and Promotion of business investments and mergers and acquisitions activities (both domestic andoverseas) with a view to entering new areas of business involving both information technology
and marketing.
As the repurchase of Shares as described in (i) above is subject to market conditions, there is a possibility
that the amount of proceeds of the issue of the Bonds used in repurchase of Shares does not reach theamount mentioned in (i) above. In such cases, the balance of such proceeds may be used towards hemeasures mentioned in (ii) above.
Disclaimer: This press release is intended as general information regarding the Company’s issuance of the Bonds. Thisannouncement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, the Bonds or the Sharesissuable upon exercise of, or upon acquisition by the Company of, the Stock Acquisition Rights in any jurisdiction in which suchoffer or solicitation is unlawful. In particular, the Bonds and the Shares issuable upon exercise of, or upon acquisition by theCompany of, the Stock Acquisition Rights have not been, and will not be, registered under the U.S. Securities Act of 1933, asamended (the “Securities Act”) and, subject to certain exceptions, may not be offered or sold within the United States or to, orfor the account of, U.S. persons (as defined in Regulation S of the Securities Act (“Regulation S”)).

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Overview of the Bonds
Securities Offered ……………………

¥5,000,000,000 Zero Coupon Convertible Bonds due 2014(bonds with stock acquisition rights, tenkanshasaigata
shinkabu yoyakuken-tsuki shasai).

Issue Price…………………………….

100.0 per cent.

Offer Price…………………………….

102.5 per cent.

Closing Date…………………………..

19 August 2011.

Listing…………………………………

Approval in-principle has been received for the listing on theSingapore Exchange Securities Trading Limited.

Lead Manager and Bookrunner.………

Deutsche Bank AG, London Branch (the “Manager").

Lock-up………………………………..

Lock-up of the Company
In connection with the issue and offering of the Bonds, theCompany has agreed not to, and not to direct any entities orany persons acting at the direction of the Company to, for aperiod beginning on the date of the Subscription Agreement
and ending on the date without the prior written consent of
the Manager:(a) issue, offer, pledge, lend, sell, contract to sell, sell any
option or contract to purchase, purchase any option orcontract to sell, grant any option, right or warant topurchase, make any short sale or otherwise transfer or
dispose of, any Shares or any other capital stock of theCompany or any securities convertible into orexercisable or exchangeable for, or that represent theright to receive, Shares or any other capital stock of theCompany; or(b) enter into any derivative transaction or any othertransaction that transfers, in whole or in part, directly orindirectly, ownership (or any economic consequences
thereof) of Shares or any other capital stock of theCompany, whether settled in cash or otherwise, otherthan:(i) the issue and offering by the Company of the Bonds
or the issue or transfer of Shares upon exercise of
the Stock Acquisition Rights;(ii) the issue or transfer by the Company of Shares upon
the exercise of any warrants to subscribe for shares,
share subscription rights or stock acquisition rights(including any bonds with stock acquisition rights)
outstanding; and(iii)the grant of stock options, stock acquisition rights or
warrants to directors and employees of theCompany, or directors and employees of any of its
subsidiaries and associated company pursuant to its
or their stock option plans.

Disclaimer: This press release is intended as general information regarding the Company’s issuance of the Bonds. Thisannouncement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, the Bonds or the Sharesissuable upon exercise of, or upon acquisition by the Company of, the Stock Acquisition Rights in any jurisdiction in which suchoffer or solicitation is unlawful. In particular, the Bonds and the Shares issuable upon exercise of, or upon acquisition by theCompany of, the Stock Acquisition Rights have not been, and will not be, registered under the U.S. Securities Act of 1933, asamended (the “Securities Act”) and, subject to certain exceptions, may not be offered or sold within the United States or to, orfor the account of, U.S. persons (as defined in Regulation S of the Securities Act (“Regulation S”)).

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In connection with the issue and offering of the Bonds, eachof Tetsuya Sugimoto and Vanillasky Corporttion (each, a“Lock-up Shareholder") have agreed pursuant to separate
lock-up letters dated the date of the Subscription Agreementthat neither they, nor any person controlled by, or acting on
behalf of, such company or individual will:(a) issue, offer, pledge, lend, sell, contract to sell, sell anyoption or contract to purchase, purchase any option orcontract to sell, grant any option, right or warrant topurchase, make any short sale or otherwise transfer or
dispose of, any Shares or any other capital stock of theCompany or any securities convertible into or exercisable
or exchangeable for, or that represent the right to receive,
Shares or any other capital stock of the Company; or(b) enter into any derivative transaction or any othertransaction that transfers, in whole or in part, directly orindirectly, ownership (or any economic consequences
hereof) of Shares or any other capital stock of theCompany, (except in each case for such actions as theCompany may take in accordance with the terms of theSubscription Agreement and, except in each case for any
lending of Shares or arrangements related thereto
pursuant to any stocklending agreements entered in
between a Lock-up Shareholder and the Manager or anyof its subsidiaries and affiliates), for a period beginningon the date of such lock-up letters (which arc dated thedate of the Subscription Agreement) and ending on thedate 180 calendar days after 19 August 2011(or, if later,
the date of payment for the Bonds), whether settled in
cash or otherwise, in each case without the prior writtenconsent of the Manager.
Early Redemption – Redemption
at the Option of the Company
upon lncreased Share Prices…………… The Company may, at any time on or after 20 August 2012and on or prior to 5 August 2014, having given not less than
45 nor more than 60 days’ prior notice, redeem all, but notsome only, of the Bonds then outstanding at 100 per cent. of
their principal amount on the date fixed for such redemption,
provided, however, that no such redemption may be madeunless the VWAP of the Shares for each of the 20 consecutive
trading days, the last of which occurs not more than 30 days
prior to the date upon which the notice of such redemption is
first given by the Company, is at least 120 per ccnt. of theConversion Price in effect on each such Trading Day.

Disclaimer: This press release is intended as general information regarding the Company’s issuance of the Bonds. Thisannouncement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, the Bonds or the Sharesissuable upon exercise of, or upon acquisition by the Company of, the Stock Acquisition Rights in any jurisdiction in which suchoffer or solicitation is unlawful. In particular, the Bonds and the Shares issuable upon exercise of, or upon acquisition by theCompany of, the Stock Acquisition Rights have not been, and will not be, registered under the U.S. Securities Act of 1933, asamended (the “Securities Act”) and, subject to certain exceptions, may not be offered or sold within the United States or to, orfor the account of, U.S. persons (as defined in Regulation S of the Securities Act (“Regulation S”)).

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